Prepare journal entries for April, 2014 to record the following transactions for Holden Corp. Assume a perpetual
Question:
Prepare journal entries for April, 2014 to record the following transactions for Holden Corp. Assume a perpetual inventory system.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).
a. April 2: Holden Corp. purchased merchandise from Stake Technology Inc. for $9,700 under credit terms of 2/10, n/60, FOB destination.
b. April 18: Received a credit memorandum in the amount of $1,300 acknowledging the return of merchandise purchased from Stake Technology Inc. on April 2.
c. April 21: Holden Corp. purchased merchandise on credit from Segura Corporation, terms 2/15, n/60, $8,000, FOB destination.
d. April 24: Paid the balance due to Stake Technology Inc.
e. April 24: After negotiations with Segura Corporation concerning problems with the merchandise purchased on April 21, received a credit memorandum granting a price reduction of $3,600.
f. April 28: Holden Corp. purchased supplies by paying $9,800.
g. April 30: Paid Segura Corporation the balance due.
